What you need to know about Airbnb and tenant insurance
Airbnb is a great way to earn some extra income and offset the cost of owning a home. But what if you don’t actually own your home? Don’t worry, Airbnb could still work for you.
The most important thing to keep in mind if you’re going to list your apartment on Airbnb is that since the property doesn’t belong to you, you need your landlord’s permission. Sure, you may feel like since you’re paying for the place you should be able to let someone stay there if you want. Some landlords might be totally cool with that. Others may find it a violation of your lease. Even though it’s your guest, their stay in the home could have an impact on your landlord’s own insurance policy, although if they already have tenants they probably already have coverage.
Your lease isn’t the only thing you need to consider when you use Airbnb. Using your apartment to make money will have an effect on your insurance coverage too.
Your insurer needs to be informed
You may feel like it’s easier for everybody if you simply host your tenant and collect your cash without telling anyone. That only works when you have good guests. If you do a good job screening your guest then that’s great, but bad things can happen to anyone. If your guest wrecks your stuff your insurer could deny your claim if they weren’t aware you were home-sharing. Airbnb in your insurance might mean you have to pay higher premiums, but you are getting more coverage, so it’s worth it.
Prepare your home for your guest
While it would be nice to believe in the best of people, it’s highly recommended that you prepare your place for your new guest by removing or securing valuables such as art or collectibles. Some items, like computers and televisions, are sought-after amenities that will help boost your rent price, so you’ll likely want to keep those where they are, even though they are valuable.
What to do if your property is damaged or stolen
Coming home to a trashed apartment is no fun. Your first instinct might be to start cleaning up or looking around to find any damaged objects. Before you do that though, whip out your camera and take pictures of everything. Make sure you call your insurance company and start the claims process as soon as possible.
If you don’t have tenant insurance
Many renters don’t insure their homes. If you’re relying on your guests’ good will or Airbnb’s Home Guarantee policy, you’re putting your faith in the wrong people. Airbnb even encourages you to make sure you’re covered, as its policy does have a number of exclusions. Long story short: chances are you’re going to have to pay out of pocket to repair or replace your stuff if you’re hosting a homestay without tenant insurance.